You guys pay so little personal income tax that your ever-more-European states are going to have to pull in every dollar they can from every other source. Over here in the UK I pay 25% tax on the first half of my income and 40% on the second half, about 12% on a the whole lot for mandatory National Insurance. Any active audiophile over here would set up a limited company (£80 one-off fee, done online in 20 minutes), but and sell all their kit in the company name and pay 20% tax on any profits (which will be £0.00), and charge the company loads of expenses just to make doubly sure it makes a good loss every year. My 17 year old son has a small studio in a shed in our garden and he has his own Limited Company for this very reason.
1099-K from PayPal (tax form)
It looks like I am getting a 1099-k form from PayPal for the first time. I sold a lot of audio items last year, used, while upgrading my system and swapping things around. Obviously I am not a business, not in this for profit, and did not make money, lost money. It’s just a hobby, a costly one.
I am guessing I have to report this with my taxes. However, the form only has the gross proceeds from PayPal, not my original purchase price. How do I deal with this? Any particular section on Turbo Tax to enter these?
I am guessing I have to report this with my taxes. However, the form only has the gross proceeds from PayPal, not my original purchase price. How do I deal with this? Any particular section on Turbo Tax to enter these?